Adverse selection in insurance requires that
a. all people face the same risk
b. potential customers facing more risk are no more interested in purchasing insurance
c. people are risk averse
d. insurers can tell higher risk people from lower risk people
c
Economics
You might also like to view...
Which of the following is part of a firm's opportunity costs? I. wages II. utility costs III. interest on a bank loan IV. interest forgone on funds used to buy capital equipment
A) I and II B) III and IV C) I, II and III D) I, II, III and IV
Economics
The growth rate of real computer investment ________ between 1987-95 and 1996-2000
A) fell from 18% to 5% B) fell from 34% to 7% C) rose from 3% to 22% D) rose from 21% to 35%.
Economics